PEO alternative
A direct Florida workers' comp policy instead of a PEO lease
PEOs are a legitimate option, and for some employers the bundled payroll and HR support is worth it. But many Florida business owners end up in a PEO only because that was the fastest way to get a comp certificate — then stay for years without ever seeing what a direct policy would cost. This page is the honest comparison.
Side by side
| Factor | PEO arrangement | Direct policy |
|---|---|---|
| Who owns the policy | The PEO. Your employees are co-employed under their master policy. | Your business. The policy is issued in your name. |
| Experience modifier | Built inside the PEO's book. You generally take none of it with you. | Yours. A clean claim history earns credit on your own renewals. |
| Pricing visibility | A bundled admin rate covering payroll, HR, and comp together. | Class code rate × payroll, itemised. You can see what comp costs. |
| Shopping renewals | One program's rate. Re-shopping means changing PEOs. | Re-marketed across carriers each year by an independent agent. |
| Certificates of insurance | Issued by the PEO, showing the co-employment relationship. | Issued on your own policy, in your own business name. |
| Leaving the arrangement | Often means re-underwriting from scratch with no credit history. | The policy and its history stay with your business. |
| Payroll and HR | Bundled in — useful if you want one vendor for everything. | Kept separate, so you can choose each provider on its own merits. |
When a PEO still makes sense
If you have no payroll department, want HR compliance handled, and value one invoice over itemised pricing, a PEO can be a reasonable trade. The problem is only when the bundle hides what the comp portion actually costs.
What to bring to a comparison
- Your current PEO invoice, with the comp or admin rate broken out if shown.
- Annual payroll split by trade or job function.
- Employee count, including part-time and seasonal.
- Any claims in the last three to five years.
See what a direct policy would cost you
Send over your trade, payroll, and headcount. We'll quote it directly and you can hold it up against your PEO invoice.